Softcat (LON:SCT) Shares Down 4.9% - Here's Why

Key Points

• Softcat shares fell 4.9% to about GBX 1,830 during Wednesday trading, with volume running 46% below the average daily level.
• The company reported strong fiscal 2026 results, including a 19.4% increase in profit and 35.4% revenue growth, raised its dividend, and agreed to expand into the U.S. through a deal with GDT.
• Slower fiscal 2027 growth guidance appears to have driven the sell-off. Analyst views remain mixed, with an overall “Hold” rating and an average price target of GBX 1,993.75, while Jefferies set a lower GBX 1,700 target.

Softcat plc (LON:SCT - Get Free Report)'s share price fell 4.9% during mid-day trading on Wednesday. The company traded as low as GBX 1,708 and last traded at GBX 1,830.41. 970,430 shares were traded during trading, a decline of 46% from the average daily volume of 1,783,115 shares. The stock had previously closed at GBX 1,924.

More Softcat News

Here are the key news stories impacting Softcat this week:

• Positive Sentiment: Softcat reported a 19.4% increase in fiscal 2026 profit, while revenue rose 35.4%, demonstrating strong demand for IT products and services. Softcat FY2026 profits rise 19.4% as revenue grows 35.4%
• Positive Sentiment: The company increased its dividend after profit growth exceeded expectations, potentially improving shareholder returns and signaling confidence in cash generation. Softcat lifts dividend as profit growth beats expectations
• Positive Sentiment: Softcat is expanding into the U.S. through a deal with GDT, adding a potential growth platform and broadening its geographic reach. Softcat posts double-digit profit growth and moves into U.S. market with GDT deal
• Neutral Sentiment: Softcat reported quarterly earnings per share of GBX 75.80, with a 45.16% return on equity and an 8.06% net margin, underscoring solid profitability. Softcat earnings report
• Negative Sentiment: Fiscal 2027 growth guidance points to a slowdown, overshadowing the strong fiscal 2026 results and likely driving the market’s negative reaction. Softcat shares fall as outlook points to slower growth
• Negative Sentiment: Jefferies reaffirmed its “hold” rating and set a GBX 1,700 price target, below the recent trading level, suggesting limited near-term upside in the broker’s view. Jefferies rating update

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Berenberg Bank boosted their target price on shares of Softcat from GBX 1,950 to GBX 2,400 and gave the company a "buy" rating in a research report on Monday, September 21st. Deutsche Bank Aktiengesellschaft cut shares of Softcat to a "hold" rating and raised their price target for the stock from GBX 1,800 to GBX 2,140 in a report on Wednesday, August 26th. Jefferies Financial Group reaffirmed a "hold" rating and issued a GBX 1,700 price target on shares of Softcat in a research note on Wednesday. Finally, JPMorgan Chase & Co. upped their price objective on shares of Softcat from GBX 1,950 to GBX 2,300 and gave the company an "overweight" rating in a report on Monday, September 7th. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of GBX 1,993.75.

Softcat Stock Performance

The stock has a market cap of £3.94 billion, a price-to-earnings ratio of 26.11, a P/E/G ratio of 11.51 and a beta of 0.58. The company's fifty day simple moving average is GBX 1,943.73 and its two-hundred day simple moving average is GBX 1,734.73. The company has a debt-to-equity ratio of 13.07, a current ratio of 1.25 and a quick ratio of 1.38.

Softcat (LON:SCT - Get Free Report) last posted its earnings results on Wednesday, October 14th. The company reported GBX 75.80 EPS for the quarter. Softcat had a net margin of 8.06% and a return on equity of 45.16%. On average, analysts forecast that Softcat plc will post 60.72 earnings per share for the current year.

Insider Transactions at Softcat

In related news, insider Kathryn Mecklenburgh acquired 176 shares of the stock in a transaction dated Monday, September 7th. The stock was purchased at an average cost of GBX 2,045 per share, with a total value of £3,599.20. Also, insider Graham Charlton acquired 176 shares of the stock in a transaction dated Monday, September 7th. The stock was bought at an average cost of GBX 2,045 per share, with a total value of £3,599.20. Insiders have acquired a total of 384 shares of company stock valued at $749,739 in the last quarter. Company insiders own 2.91% of the company's stock.

Softcat Company Profile

Softcat plc operates as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, procures, designs, implements, and manages technology, such as software licensing, workplace technology, networking, security, and cloud and datacenter for businesses and public sector organizations. It also offers public cloud, collaboration, connectivity, data centre and private cloud, devices, and financial solution services. In addition, the company provides IT asset management, lifecycle solutions, modern management, security, software licensing, supply chain operation, and virtual desktop and application.

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